SGB Executive

Shares of Academy Sports + Outdoors rose 9.2 percent Tuesday after the Texas-based retailer reported fourth-quarter earnings that handily topped Wall Street estimates to cap off a record year. Academy officials are bullish that many favorable conditions developed during the pandemic, including greater interest in sports and outdoor activities and a less promotional climate, will help drive profitable growth in the years ahead.

Cowen, on Monday, became the latest investment firm to downgrade Foot Locker since the sneaker retailer issued its fourth-quarter results. At the time, Foot Locker said reduced allocations of Nike products would lead to a significant decline in sales in the current year. Cowen’s downgrade was prompted by eroding digital traffic and search trends, inflationary pressures and mall exposure.

This past holiday quarter was one of the rare periods that saw companies talking more about supply than demand on analyst calls. Most vendors in the active lifestyle space were able to navigate closed factories, port congestion and other logistics turbulence to deliver better-than-expected performances but many warned of continued pressure at least through the first half of 2022. Insights from Nike, Adidas, Columbia Sportswear, VF Corp., Callaway Golf, Crocs, and others are rounded up in today’s post

Winnebago Industries, Inc.’s earnings surged in the second quarter ended February 26 as sales expanded 38.7 percent, including organic growth of 29 percent. Backlogs remain up well north of double-digits.

Wall Street analysts were impressed with Nike’s ability to deliver better-than-expected earnings for its fiscal third quarter ended February, fueled by continued strong demand and above-plan performances in North America and EMEA regions. Exposure to Russia/Eastern Europe and COVID-related volatility in China were seen as potential headwinds.

At its recent Investor Day, Kohl’s management team brought out the leaders at Adidas, Under Armour, Eddie Bauer, Columbia Sportswear, Levi Straus and Lands’ End to underscore its commitment to being retail’s authority in casual and active categories. Said Michelle Gass, Kohl’s CEO, “The pathway we’re already on to be a leader in active and casual before the pandemic has only become more relevant as consumer trends accelerated during the last couple of years.”

Nike, Inc. reported third-quarter earnings that handily topped Wall Street expectations as strong momentum continued in every region outside of China, and gross margins were boosted by higher full-priced sales and healthy growth in its DTC business. Nike officials said China’s sales are improving sequentially, supply chain pressure is easing and its moves to consolidate its wholesale base are largely complete.

On Holdings circumvented supply chain challenges to deliver fourth-quarter results that easily surpassed Wall Street targets. The Swiss running brand also lifted its outlook for 2022, projecting sales to expand at least 37 percent on top of 2021’s 70.4 percent gain.

Designer Brands reported a continued significant bounce-back in top-line growth for its flagship DSW chain in the fourth quarter as core dressier footwear categories continued to recover and the chain’s push into athleisure and active styles continued to gain market share. Athleisure sales penetration at DSW’s U.S. retail business was 44 percent in Q421 compared to 39 percent in Q419.

Shares of Shoe Carnival, Inc. jumped Wednesday after the off-price footwear retailer reported fourth-quarter profit that blew past expectations to cap off a record year.

Famous Footwear’s fourth-quarter sales were up 15.9 percent year-over-year and grew 9 percent in the fourth quarter of 2019, despite entering a period with inventory down 24 percent. On a conference call with analysts, Diane Sullivan, Caleres’ chairman and CEO, said Famous’ athletic and sport categories continue strong with strength at Nike.

Speaking at the BofA Securities Consumer and Retail Technology Conference, officials at Dick’s took a deep dive into the wide-scale benefits stemming from its transformation efforts that started in 2016 and the re-baselining of its business due to the pandemic. Dick’s also expressed little concern about losing Nike allocations as the brand has aggressively shifted to DTC.

Cowen reduced its estimates and price targets for Nike, Adidas and Puma due to concerns over the fallout from the Russia/Ukraine war, including the impact on its EMEA businesses and heightened inflationary and supply chain pressures.

Shares of Zumiez Inc. were trading down about 13 percent in mid-day trading Friday after the action-sports chain reported Q4 earnings that fell short of expectations while forecasting a steep decline in first-quarter earnings as sales sharply deteriorated in recent weeks.

Tilly’s Inc. reported fourth-quarter earnings that came in lower than guidance and forecast a significant decline in first-quarter earnings as it anniversaries last year’s federal stimulus payments and pent-up demand as the COVID-19 vaccine arrived.